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Top banks still prefers fossil fuels

Illustration from the report

By:

Jesper Stegmann

The world's 25 largest private sector banks channeled at least USD 931 billion into fossil fuel companies in the period 2009-2014, according to a new report by Fair Finance Guide and IBIS, while over the same period the banks’ financing of renewable energy totaled USD 98 billion.

A new international report states that the world’s top 25 banks have been giving priority to dirty energy over clean energy since 2009, the year of the Copenhagen climate summit. Up to the end of 2014, for every dollar the banks have channeled into renewable energy, they’ve provided more than USD 9 in fossil fuels.

The report, Undermining our Future, is the first international study to compare private sector bank financing of fossil fuels and renewable energy. Alexandre Naulot, spokesperson at Fair Finance Guide International, says:
“This analysis, now, more than ever, we need to start seeing some firm commitments from the banks to quickly stop this business as usual.”

We need ambitious action

Also revealed by the report, three US banks Citi, JPMorgan Chase and Bank of America are the largest fossil banks. Between 2009 and 2014, Citi and JPMorgan Chase each provided over USD 76 billion to fossil fuel companies and only USD 6.5 billion and USD 4.4 billion respectively to renewable energy. Bank of America provided USD 62.7 billion to fossil fuel companies, and only USD 5.4 billion to renewable energy.

“Therefore Governments also need to act. We need them to adopt strong legislations that will mobilise the financial sector towards a low carbon economy and will encourage the banks and financial institutions to phase out of fossil fuels, starting with coal,” says Alexandre Naulot.